Use Miles or Pay Cash and Write off?? TAX fans??
May 27, 2015, 10:37 am
#1
Original Poster
Join Date: Oct 2014
Posts: 20
Use Miles or Pay Cash and Write off?? TAX fans??
I am a writer, so can tax-deduct travel if I can associate it with a story.
But tax deduction is just a 25% discount really, right? Even if coming off my LLC
Should I use miles if I have them?
But tax deduction is just a 25% discount really, right? Even if coming off my LLC
Should I use miles if I have them?
May 27, 2015, 11:01 am
#2
Join Date: Dec 2009
Location: New York, NY
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Posts: 6,776
Depends which country you pay your taxes in.
I tend to reserve my miles/points for personal travel/expenses instead of using them for a work related expense. I am a freelance consultant and when given a flat-rate stipend that covers travel, lodging and other operating expenses I have used miles when the cost of the airfare was high. For my own records and IRS auditing purposes I do create trip packs of itinerary and expenses related.
I tend to reserve my miles/points for personal travel/expenses instead of using them for a work related expense. I am a freelance consultant and when given a flat-rate stipend that covers travel, lodging and other operating expenses I have used miles when the cost of the airfare was high. For my own records and IRS auditing purposes I do create trip packs of itinerary and expenses related.
May 27, 2015, 1:27 pm
#3
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Depends which country you pay your taxes in.
I tend to reserve my miles/points for personal travel/expenses instead of using them for a work related expense. I am a freelance consultant and when given a flat-rate stipend that covers travel, lodging and other operating expenses I have used miles when the cost of the airfare was high. For my own records and IRS auditing purposes I do create trip packs of itinerary and expenses related.
I tend to reserve my miles/points for personal travel/expenses instead of using them for a work related expense. I am a freelance consultant and when given a flat-rate stipend that covers travel, lodging and other operating expenses I have used miles when the cost of the airfare was high. For my own records and IRS auditing purposes I do create trip packs of itinerary and expenses related.
May 27, 2015, 2:04 pm
#4
Join Date: Jul 2009
Location: Washington, DC
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Posts: 7,320
Your conclusion about tax deductions is a bit of an oversimplification. If you write a story about 1 day of your 15 day trip, you don't get to write it all off. If you go somewhere for a social visit and then write an article on the way back, you don't get to write it all off.
May 27, 2015, 3:42 pm
#5
Join Date: Sep 2009
Location: Los Angeles
Posts: 442
25% tax deduction if you're in that bracket.
State income tax
If LLC not taxed as S-Corp, Self Employment tax (6.2% for SS + 1.45% for Medicare)x2 = 15.3%
Poss deduction = 40%+ of income?
But I agree with Adam1222, just because you write a story, doesn't mean you can write off the whole fare. The IRS could request an explanation of the business purpose of the trip.
State income tax
If LLC not taxed as S-Corp, Self Employment tax (6.2% for SS + 1.45% for Medicare)x2 = 15.3%
Poss deduction = 40%+ of income?
But I agree with Adam1222, just because you write a story, doesn't mean you can write off the whole fare. The IRS could request an explanation of the business purpose of the trip.
May 27, 2015, 9:15 pm
#6
Join Date: Aug 2010
Location: BKK
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Closed pending review by moderators.